Sir Bob Kerslake admits taxpayers money is only being released by in stages
following a series of setbacks in the Universal Credit system

The plan to deliver Universal Credit, the Government’s flagship benefits reform has still not been approved by the Treasury, the head of the civil service has admitted.

Sir Bob Kerslake said that taxpayers’ money is only being released in stages following months of delays and accusations of financial mismanagement by the Department for Work and Pensions.

It will come as a major blow to Iain Duncan Smith, the Work and Pensions Secretary, who has championed the reform.

Universal Credit, regarded as Mr Duncan Smith’s personal political mission, will merge several benefits into a single payment that will be adjusted to ensure that claimants are always better off in work than on welfare.

However, the project has faced a series of setbacks, with tens of millions of pounds being written off and the entire process “reset” so experts could be brought in to rescue it.

Sir Bob’s comments were made yesterday during a hearing in front of MPs on the Public Accounts Committee and came after a number of senior civil servants repeatedly dodged questions about whether Universal Credit has been signed off by officials.

“We shouldn't beat about the bush, it hasn't been signed off,” he said.

“What we've had is a set of conditional reassurances about progress and the Treasury have released money accordingly. That is one of the key controls.”

More than £40 million spent on IT systems for Universal Credit was written off in the last financial year.

The National Audit Office, the Government’s spending watchdog, has previously criticised the "weak management, ineffective control and poor governance" which allowed the costly mistakes to go unchecked.

Sir Jeremy Heywood, the Cabinet Secretary, yesterday rejected claims from the committee that the problems were the result of weak central oversight in Whitehall.

He said that officials had told Mr Duncan Smith the project was “way off track”.

“It is a very good example of where the centre did intervene, very strongly," he told the committee.

“At the start of last year the MPA (Major Projects Authority) with support from the Treasury and a lot of technical help from the Government Digital Service, played a very, very clear role in bringing to the Secretary of State's attention that the project was way off track.”

Chris Bryant, the shadow welfare reform minister, said: “Last week ministers said the Treasury had signed off the business case for Universal Credit.

“But today one of the most senior civil servants has contradicted them, saying the Treasury is still refusing to approve the Government's £12.8 billion welfare reform programme.

“It is more evidence of the chaos surrounding Universal Credit and it raises worrying questions about George Osborne's refusal to endorse his Government's flagship welfare reform scheme.”

Margaret Hodge, the chair of the committee, said on Twitter: “Just had four permanent secretaries admit after blustering Universal Credit business case not signed off. Chaos or what?”

A DWP spokesman said: "Universal Credit is on track to roll out safely and securely against the plan set out last year - the new service is now available in 24 Jobcentres, and last week expanded to claims from couples.

"The Treasury has been fully engaged in the roll out plan and have approved all funding to date."